Irish Continental Group (ICG) is looking for further growth following the better-than-expected 21 per cent rise in pre-tax profit to #22.3 million (£17.6 million) in the year to October 31st, 1998. This is in spite of the problems posed by the proposed abolition of duty free sales in the middle of 1999. The ferries group has reiterated that the abolition "will pose a challenge to all sea and air operator in relation of passenger travel".

However, buoyant economic growth is expected to lead to sustained growth in RoRo and LoLo freight movements. Also, the introduction of its fast craft in the middle of the year "will enable us to improve our travel service offering and will also enable more freight to be carried on the Isle of Inishmore", said the chairman, Mr Tom Toner.

The new catamaran type vessel, under construction in Australia will cost #36.8 million (£29 million), with a capacity of 800 passengers, 200 cars and a speed of 39 knots (45 mph). It will allow ICG to increase the frequency, with up to four additional departures per day from both Holyhead and Dublin.

The latest group results show a 21 per cent growth in turnover to #213.3 million (£168.1 million) and a 22 per cent rise in earnings per share to 86.6 cents (68.2p). A final dividend of 6.58 cents (5.18p) has been declared, making a total of 9.87 cents (£7.77p), representing an increase of 20 per cent. Growth was achieved in both divisions but the best performance was in the container and terminal division which showed a 69 per cent increase in operating profit to #4.3 million (£3.4 million), while sales rose by 40 per cent (29 per cent excluding acquisitions) to #81 million (£64 million).

Mr Toner said "strong growth" on Eucon's service was achieved. The acquisition of Eurofeeders, based in Felixstowe, last May with a fleet of 4 chartered vessels brought the group's short sea fleet of vessels up to 13 chartered ships. Container volumes increased by 50 per cent to 258,000 twenty foot equivalent units. The ferries division increased its profit before interest by 14 per cent to #28.4 million (£22.4 million), while sales grew by 12 per cent to #137 million (£108 million). Passenger numbers grew by 3 per cent to 1.60 million. Growth was achieved on the Dublin to Holyhead route but there was a decline on the Rosslare to Pembroke route. The biggest percentage growth, 23 per cent to 186,000, was on the Ireland to France route. The roll-on roll-off freight enjoyed a record year with carryings up 27 per cent to 139,000 trucks. All routes enjoyed growth.

ICG has strengthened its financial position with a drop in gearing from 88 per cent to 67 per cent despite the financing of the new ferry.

(# signifies the euro)